Himachal allows 30% interchange between country, foreign liquor quotas

A notification to this effect has been issued by the office of the Commissioner, State Taxes and Excise, following a Cabinet decision taken earlier this month under the chairmanship of Chief Minister Sukhvinder Singh Sukhu.

The notification states that the new “sub-rule 35 A (30) under rule 35A” reads that “the conversion of quota of Foreign Spirit into Country Liquor and vice versa for the year 2025-26 shall be allowed by the Collector (Excise) of the Zone concerned for each quarter of the current Financial Year, on application of the licensee of a vend or unit/units where the owner is same on the basis of the prescribed formula”.

As per the rule, conversion shall not exceed 30 per cent of the total quota for each quarter.

The notification also defines the formula to calculate the equivalent converted quota between the two liquor categories: “From Foreign Spirit to Country Liquor: Required Quota × License Fee of Foreign Spirit ÷ License Fee of Country Liquor = Converted Quota. From Country Liquor to Foreign Spirit: Required Quota × License Fee of Country Liquor ÷ License Fee of Foreign Spirit = Converted Quota”. This ensures that the conversion maintains revenue parity between the two categories, based on their respective license fees, as per the notification.

The amendment has been made by Dr. Yunus, Financial Commissioner (Excise) in exercise of powers conferred under Sections 16, 81, and 82 of the Himachal Pradesh Excise Act, 2011, and corresponding provisions of the Punjab Excise Act, 1914, which remain applicable in parts of Himachal Pradesh under the Punjab Reorganisation Act, 1966. The notification takes immediate effect.

Sources said that the decision aims to provide greater operational flexibility to the liquor licensees by allowing them to balance their inventories according to market demand and regional consumption patterns. The modification is particularly relevant to contractors managing both IMFL and Country Liquor vends under the same ownership. Earlier, liquor contractors were restricted to selling within their fixed category of license, leading to unsold stock and uneven distribution between IMFL and CL markets. The new rule allows licensees to apply for conversion of part of their quota each quarter.

A senior officer said, “The move would help ensure optimal utilization of liquor quotas and reduce wastage, particularly in districts where the consumption ratio between Country Liquor and IMFL varies widely. It is also expected to increase excise revenue through the additional conversion fee.”

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